Understanding Business Taxes

If you've recently started working as an independent contractor, then you likely need help with your taxes. Get a better understanding of business taxes here.

How To Maximize The Dollars You Spend On A CPA

Posted on:
12 February 2018

Certified Public Accountants (CPAs) can perform a valuable service of helping you save or maximize your money. Although they do charge a fee for consulting, the amount you can stretch your money will more than make up for it, especially if you follow these tips for maximizing your relationship with a CPA.

Ask Plenty of Questions

When you are managing your finances, the benefit of having a CPA who knows you well is that they can give you a quick answer to questions about your taxes or any other financial issue. You could spend hours trying to interpret the tax code, only to misinterpret it and have to pay out gift taxes later. Instead, your CPA could have quickly told you that you had missed something when reading the tax code. Or you might choose an investment opportunity, only to have the details bite you in the backside; but your CPA will likely be already familiar with the investment opportunity and could have quickly talked you out of it.

The point of having a CPA is so that you can lean on their expertise to save you time and help you make the best decisions. Be sure that you loop your CPA in before you make any big money moves, and trust the wisdom and experience of the experts.

Keep Up Your Books

You CPA will have to work much harder if you don't keep your own receipts and records organized. Can they sort this out for you? Sure, but it will be at the high hourly rate they charge for much more specialized work, such as analysis and consulting. For most small businesses or individuals, it is probably much more cost- and time-efficient for you to present your CPA with a neat set of books and have them consult you only on the things you couldn't easily do yourself.

Keep the Relationship Going

The final, and most important, tip is to pick a good CPA and keep the relationship going. The early parts of building a relationship with a CPA involve the consultant getting to know your financial goals and the current status of your portfolio. All of that work is wasted if you switch CPAs or decide not to keep them current on your situation. Instead, when you have a continuous relationship with your CPA, they can quickly help you out when you have legal questions, need advice on an investment opportunity, or want help with your taxes.

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After I started working as an independent contractor, I was astonished with how much my taxes were at the end of the year. I was really frustrated with the entire process, so I began working with an accountant to make things right. They were really interesting to talk to, and before I knew it, things were getting sorted out. This blog is here to help people to know how to understand business taxes and to take care of them the right way the first time. Read more about going through, organizing your finances, and saving for a brighter, happier future.